US supermarket group Tops Friendly Markets has had its bid to acquire a majority of Penn Traffic’s assets approved by the US Bankruptcy Court.
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Penn Traffic filed for Chapter 11 bankruptcy protection in November but had hoped to reorganise its operations and remain afloat.
The firm, however, has had to close 53 of its P&C and Quality Market locations, as well as two warehouses, with the loss of around 4,000 jobs.
Tops will acquire a majority of Penn Traffic’s assets, including its 79 supermarket locations.
Tops submitted a bid which included cash as well as “substantial reductions” in unsecured claims made against Penn Traffic by UFCW Local One Pension Fund and C&S Wholesale Grocers.
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By GlobalData“From the very beginning of our transition to a locally operated company, we have pledged to invest in the markets we serve, and to grow and strengthen our position as the largest grocery chain in the region,” said Tops’ president and CEO Frank Curci.
CFO Kevin Darrington added that it was Tops’s goal to keep “as many jobs” and operate “as many stores, without any interruption in service, as we possibly can”.
“We also plan to invest in those stores that are in need of upgrades in an effort to best serve our customers and associates,” Darrington said.
Bank of America Merrill Lynch and Morgan Stanley are acting as financial advisors to Tops.
